In an unprecedented move, U.S. Treasury Secretary, Steve Mnuchin, has announced some limited relief for taxpayers in light of the Coronavirus pandemic.
What It Is
The relief provides some individuals and corporations an extension of time for the payment of their 2019 taxes. An individual who owes up to $1 Million and a corporation that owes up to $10 Million may have an additional 90 days to pay their 2019 taxes without incurring any interest or penalty for late payment. The relief is automatic says Mnuchin, requiring only that you file your tax return.
What It Is Not
This is not an extension of time to file your tax return. Individuals and C corporations must file their return or file for an extension by the April 15, 2020 filing deadline.
What We Don’t Know
The one thing that was not commented on is if there will be an extension of the due date for the first quarter estimated tax payment. Typically, individuals who are required to make estimated payments must make their first payment by April 15. Hopefully, guidance on this will be issued in the coming days.
State of Ohio
At this time, the State of Ohio has not issued any statement about extending either the due date or payment date for Ohio income taxes. The Ohio Society of Certified Public Accountants has written a letter to the governor requesting that an extension be put in place and we are currently awaiting a response.
This information is all based on the press conference at which Mnuchin spoke today. No formal guidance or announcements have come from the IRS at this time. We will continue to update you on any changes as guidance becomes available.